Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,500 $ 34,400 $ 36,200 89, 30e 63,200 50,6ee 38,271 82,200 54,800 11,418 9,771 3,889 424,511 288,429 284,511 $595,000 $479,999 $ 35e, Bee $148,155 $ 88,224 $ 45,738 1e9, 623 109,181 78,124 162,580 162, see 162,500 174,722 118,895 63,638 $595, eae $479,00 $ 350, Bee The company's income statements for the Current Year and 1 Year Ago follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $773,5ee $ 559,300 Cost of goods sold 5471,835 $363,545 Other operating expenses 239,785 141,503 Interest expense 13,150 12,864 Income tax expense 18,856 8,390 Total costs and expenses 734,826 526, 382 Net income $ 38,674 $32,998 Earnings per share $ 2.38 $ 2.83 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 32.00 32.ee 9.38 8.19 For both the Current Year and 1 Year Ago.compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 20. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Simon's Company $ 31,500 $ 34,400 $ 36,200 89,388 63,200 5e, 6ee 38,271 82,288 54,800 11,418 9,771 3,889 424,511 288,429 284,511 $595, eee $470,eee $ 350, Bee ASSELS Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, sie par value Retained earnings Total liabilities and equity $148,155 $ 89,224 $ 45,738 129,623 109,181 78,124 162,509 162, see 162, see 174,722 118,695 63,638 $595,000 $470, eae $ 350,000 The company's income statements for the Current Year and 1 Year Ago Follow For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $773,580 5471,835 239, 785 13,150 10,856 734,826 $ 38,674 1 Yr Ago $ 559,380 $363,545 141,583 12,864 8,390 526, 382 $ 32,998 $ 2.38 $ 2.83 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 32.00 38.00 8.38 9.19 For both the Current Year and 1 Year Ago.compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 20. Assuming Simon's competitor has a price-earnings ratio of 7. which company has higher market expectations for future growt 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Numerator: | Choose Denominator: Price-Earnings Ratio Market price per common share Earnings per share Price-earnings ratio Current Year: 1 0 1 Year Ago: 11 = 0 Red Red $ 31,500 $ 34,488 $ 36,288 89, 390 63,200 50,620 38,271 82,298 54,888 11,418 9,771 3,889 424,511 288,429 284,511 $595,000 $479,800 $ 350,000 ASSEL Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $1e par value Retained earnings Total liabilities and equity $148,155 $ 88,224 $ 45,738 189,623 189,181 78,124 162,500 162,500 162,5ee 174,722 118,695 63,638 $595, eee $470,99 $ 35e,eee The company's income statements for the current Year and 1 Year Ago follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Yr $773,50 $471,835 239,785 13,150 10,056 734,826 $ 38,674 1 Yr Ago $ 559,300 $363,545 141, 5e3 12,864 8,390 526, 302 $32,998 Earnings per share 2.38 $ 2.03 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 32.00 32.ee 8.38 0.19 For both the Current Year and 1 Year Ago. compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 20. Assuming Simon's competitor has a price-earnings ratio of 7. which company has higher market expectations for future growth? 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common StockholdersEquity. Choose Numerator: Choose Denominator: = Net income Preferred dividends Average common stockholders' equity = Return On Common Stockholders' Equity Return on common stockholders' equity 297.492.3% 9.896 Current Year: 01/ $ 131 = $ $ 38,6741 32.998 - 1 Year Ago: $ 337,222 = $ 31,500 $ 34,400 $ 36,2ee 89,380 63,280 50,60 38,271 82, 2ee 54, Bee 11,418 9,771 3,889 424,511 288,429 284,511 $595,000 $478,080 $ 350, Bee Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $1e par value Retained earnings Total liabilities and equity $148,155 $ 80,224 $ 45,738 109,623 109,181 78,124 162,500 162,500 162,500 174,722 118, 095 63,638 $595,eee $479,eee $ 350, eee The company's income statements for the Current Year and 1 Year Ago follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $773,500 $471,835 239,785 13,150 10, 256 734,826 $ 38, 674 $ 2.38 1 Yr Ago $ 559,300 $363,545 141,503 12,864 8,390 526, 302 $ 32,998 $ 2.83 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 32.00 38.00 8.38 0.19 For both the Current Year and 1 Year Ago. compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 20. Assuming Simon's competitor has a price earnings ratio of 7. which company has higher market expectations for future growth? 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Choose Numerator: Dividend Yield 1 Choose Denominator: 1 = Dividend Yield Dividend yield 0 % = Current Year: 1 Year Ago 01%